Budget carrier Spicejet is planning to lay off 1,400 employees, which is 15 per cent of its total workforce, to save costs, according to an Economic Times report. The report, citing people familiar with the matter, said the layoffs have become necessary because of Spicejet’s Rs 60 crore salary bill.
“People have already started getting (layoff) calls,” said a person familiar with the matter, according to the ET report.
The decision to downsize has been confirmed by SpiceJet officials. A Spicejet spokesperson said the layoff is to ensure an alignment of companywide costs against operational requirements.
The airline, which is currently operating around 30 aircraft including eight that are wet-leased from foreign carriers, has been delaying salary payments for several months.
Spicejet is raising Rs 2,200 crore and the process for the fund infusion is on.
The spokesperson said there are not any funding delays and the company is progressing well with its fund infusion and has already made its public announcements accordingly. “We will be making additional announcements as we progress on the next tranche. The majority number of investors have subscribed,” said the spokesperson.
